Morgan Stanley and Citi are managing investor calls for Meta as the company prepares to sell at least $20B in new debt denominated in U.S. dollars and euros. The planned multi-tranche offering would include as many as five dollar and six euro tranches to fund the company’s artificial intelligence buildout. The bond sale is the latest in a fundraising campaign spanning the last two weeks, including common and preferred stock and an at-the-market program, totaling nearly $120B across Meta’s capital structure.
The push for capital comes after S&P Global Ratings revised the company’s credit outlook to negative, although it affirmed Meta’s AA- rating. S&P warned that rising costs for data centers and energy infrastructure could leave Meta with a free cash flow deficit of $71B in 2027, with capital expenditures topping $225B that year. The agency noted that the company’s leverage could cross 1.0x as early as 2027, a threshold that would put its current credit rating at risk.